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Ukraine will import a 16-year maximum of wheat - US analysts
This year Ukraine will have to import the largest in the last 16 years amount of wheat, while last year it ranked sixth among the world's largest exporters of grain, agency Bloomberg has reported with reference to a source in the US government.
According to the agency, due to a drought Ukraine will have to purchase 2.5 million tonnes of wheat within the next twelve months. Despite a 63 percent increase in plantings of spring wheat, the farmers will have an extremely poor crop.
Bad weather and raids of locusts will probably cut wheat crop in Ukraine down to 6 million tonnes in this season against 20.55 million tonnes last year, the agency continues. The Central Bank of Ukraine last week declared an intent to buy a $400 million worth of grains abroad.
According to the report of US Embassy in Kiev, the USA declared readiness to supply grain to Ukraine. The purchases are also possible in the European Union, Hungary and, to a lesser degree, in Turkey. The most essential supplies of grain to Ukraine from USA constituted 100,000 tonnes in 1994 and 400,000 tonnes in 1993.
Last time Ukraine imported the amount of cereals, exceeding 2.5 million tonnes, in 1987-1988.
International Grains Council in June decreased its forecast of global wheat production 1.7 percent, because of expected low crops in Ukraine and Russia.
Wheat deficit in the region could entail shortage of wheat worldwide, and this, in turn, can break the tendency of grain futures market in Chicago, where a 5 percent price decline took place over the last year.